MCQOPTIONS
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MCQOPTIONS
This section includes 526 Mcqs, each offering curated multiple-choice questions to sharpen your Civil Engineering knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
XYZ & Co. incurred a liability by giving discount on issue of debentures. Such expenditureshall be considered as |
| A. | Revenue expenditure |
| B. | Deferred revenue expenditure |
| C. | Capital expenditure |
| D. | Illegal expenditure |
| Answer» C. Capital expenditure | |
| 52. |
Educational cess is levied in case of ……….. |
| A. | Individual |
| B. | HUF |
| C. | Company |
| D. | All assesses |
| Answer» E. | |
| 53. |
Under the Income Tax Act, 1961, depreciation on machinery is charged on ……… |
| A. | Purchase price of the machinery |
| B. | Written down value of the machinery |
| C. | Market price of the machinery |
| D. | All of the above |
| Answer» C. Market price of the machinery | |
| 54. |
A company which is neither an Indian company not has made the prescribed arrangements forthe declaration and payment of dividends within India is called ----- |
| A. | Domestic Company |
| B. | Foreign Company |
| C. | Public sector company |
| D. | Provincial company |
| Answer» C. Public sector company | |
| 55. |
salary of Member of Parliament is taxable under the head _______________ |
| A. | Salary |
| B. | Income from Other Sources |
| C. | Income from Business |
| D. | All of the above |
| Answer» C. Income from Business | |
| 56. |
Under the Income-tax Act, 1961, 'notional profit' from speculative business is – |
| A. | Taxable under the head 'income from profits and gains of business and profession |
| B. | Taxable under the head 'income from other ' sources' |
| C. | Taxable either as income from other sources or as income from profits and gains of business and profession |
| D. | Not taxable. |
| Answer» C. Taxable either as income from other sources or as income from profits and gains of business and profession | |
| 57. |
Previous year means the financial year immediately preceding the…………………... |
| A. | Accounting Year |
| B. | Assessment Year |
| C. | All of the above |
| D. | None of the above |
| Answer» C. All of the above | |
| 58. |
Whichof the following deals with Domestic Company? |
| A. | Sec 2 (234) |
| B. | Sec 2 (224) |
| C. | Sec 2 (22) |
| D. | Sec 2 (26) |
| Answer» C. Sec 2 (22) | |
| 59. |
Any company which has made the prescribed arrangements for the declaration and payment of dividends within India is called ------ |
| A. | Domestic Company |
| B. | Non domestic company |
| C. | Public sector company |
| D. | Provincial company |
| Answer» B. Non domestic company | |
| 60. |
Income tax rates are fixed in…………….. |
| A. | Income tax Act |
| B. | Finance Act |
| C. | Income tax rules |
| D. | Finance rules |
| Answer» C. Income tax rules | |
| 61. |
Flat rate of corporate tax for a foreign company is |
| A. | 15% |
| B. | 25% |
| C. | 30% |
| D. | 40%% |
| Answer» E. | |
| 62. |
An assessee paid insurance premium against risk of damage or destruction of stocks or stores used for the purposes of his business or profession. Such expenditure shall be considered as |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Deferred revenue expenditure |
| D. | Illegal expenditure |
| Answer» B. Capital expenditure | |
| 63. |
Profits earned from an illegal business are............... |
| A. | Taxable. |
| B. | Tax free. |
| C. | Ignored by Tax Authorities. |
| D. | treated as other income. |
| Answer» B. Tax free. | |
| 64. |
Under the Income-tax Act, 1961, which of the following outlays incurred by Sun Ltd. during theprevious year ended 31st March, 2019 will not be admissible as deduction while computing its business income |
| A. | Contribution to a political party in cash |
| B. | Interest on loan taken for payment of income-tax |
| C. | Capital exnditure on advertisement |
| D. | All of the above |
| Answer» E. | |
| 65. |
Section 80 JJAA deals with |
| A. | Deduction in respect of produced companies |
| B. | Production in respect of certain incomes |
| C. | Deduction in respect of employment of new employee |
| D. | Deduction in respect of profits and gains from undertakings an enterprise in special category states |
| Answer» D. Deduction in respect of profits and gains from undertakings an enterprise in special category states | |
| 66. |
MAT Provisions are applicable to---- |
| A. | Non domestic companies |
| B. | Indian companies |
| C. | Private companies |
| D. | Every Company |
| Answer» E. | |
| 67. |
The books of accounts are to be kept and maintained for a period of how many years from theend of the relevant assessment year. |
| A. | 6 years |
| B. | 5 years |
| C. | 8 years |
| D. | Unlimited period |
| Answer» B. 5 years | |
| 68. |
-------- are treated as agricultural income |
| A. | Income from poultry farm |
| B. | Income from bee heaving |
| C. | Purchase of standing crops |
| D. | All of these |
| Answer» E. | |
| 69. |
The Presumptive Taxation Scheme of Section 44 AD can be adopted by |
| A. | Resident Individual tax payers |
| B. | Hindu Undivided Families |
| C. | Partnership firms except Limited Liability Partnership Firms |
| D. | All of these |
| Answer» E. | |
| 70. |
Residential status is determined for ……………….. |
| A. | previous year |
| B. | assessment year |
| C. | accounting year |
| D. | financial year |
| Answer» B. assessment year | |
| 71. |
Income by way of rent of agricultural land is ……………. . |
| A. | business income |
| B. | income from other sources |
| C. | agricultural income |
| D. | casual income |
| Answer» D. casual income | |
| 72. |
The total income of a non domestic company is taxable at the rate of---- |
| A. | 20% |
| B. | 30% |
| C. | 40% |
| D. | 35% |
| Answer» D. 35% | |
| 73. |
The Income Tax Act came into force from _______________ |
| A. | 1st March 1971 |
| B. | 1st April 1971 |
| C. | 1st March 1961 |
| D. | 1st April 1962 |
| Answer» E. | |
| 74. |
Substantial interest in the company means not less than---- of voting power |
| A. | 50% |
| B. | 20% |
| C. | 30% |
| D. | 40% |
| Answer» C. 30% | |
| 75. |
A company in which the public is not substantially interested is known as |
| A. | Domestic company |
| B. | Foreign company |
| C. | Widely held company |
| D. | Closely held company |
| Answer» D. Closely held company | |
| 76. |
Deemed dividend is defined in |
| A. | Section 2 (22)(a) |
| B. | Section 2 (21)(a) |
| C. | Section 2 (23)(a) |
| D. | Section 2 (22)(c) |
| Answer» B. Section 2 (21)(a) | |
| 77. |
The rate of corporate dividend tax during the year 2018-19 is ------ |
| A. | 17.674% + 12% surcharge + 4% HEC |
| B. | 18. % + 12% surcharge + 4% HEC |
| C. | 19.67% + 12% surcharge + 4% HEC |
| D. | 20% + 12% surcharge + 4% HEC |
| Answer» B. 18. % + 12% surcharge + 4% HEC | |
| 78. |
Deduction of tax at source made for incomes which can be calculated in advance is called……………..? |
| A. | TDS |
| B. | PAS |
| C. | FAS |
| D. | MAS |
| Answer» B. PAS | |
| 79. |
Donation is deductible under section |
| A. | 80 C |
| B. | 80D |
| C. | 80 E |
| D. | 80 G |
| Answer» E. | |
| 80. |
Alternate Minimum Tax shall not be applicable to a non-corporate assessee who has claimed anydeduction under: |
| A. | Sections 80-IA to 80RRB |
| B. | section 80P |
| C. | Section 10AA |
| D. | Section 35AD |
| Answer» C. Section 10AA | |
| 81. |
------ is a casual income |
| A. | Interest received |
| B. | Dividend income |
| C. | Person received |
| D. | Winning from lotteries |
| Answer» E. | |
| 82. |
Which of the following is not taxable under the head income from other sources? |
| A. | Family pension |
| B. | Sum received under Keyman Insurance Policy |
| C. | Rent received on letting of business |
| D. | Salary to a member of parliament |
| Answer» D. Salary to a member of parliament | |
| 83. |
A short term capital asset means a capital asset held by the assesse for not more than |
| A. | 12 Months immediately preceding the month of its transfer |
| B. | 24 Months immediately preceding the month of its transfer |
| C. | 36 Months immediately preceding the month of its transfer |
| D. | None of these |
| Answer» D. None of these | |
| 84. |
The salary, remuneration or compensation received by the partners is taxable under the head ----- |
| A. | Income from Other Sources |
| B. | Income from Business |
| C. | Salary |
| D. | None of the above |
| Answer» C. Salary | |
| 85. |
Long term capital loss can be set off against ----- |
| A. | Long term capital loss |
| B. | Short term capital loss |
| C. | Long term capital gain |
| D. | All of these |
| Answer» D. All of these | |
| 86. |
A company in which the public are not substantially interested is closed------ |
| A. | Open company |
| B. | Closely held company |
| C. | Limited company |
| D. | None of these |
| Answer» C. Limited company | |
| 87. |
Compliance with legal formalities and availing tax incentives are cases of |
| A. | Tax evasion |
| B. | Tax planning |
| C. | Tax avoidance |
| D. | Tax management |
| Answer» E. | |
| 88. |
Expenditure incurred by an hotelier on replacement of linen and carpets in his hotel. Suchexpenditure shall be considered as |
| A. | Revenue expenditure |
| B. | Deferred revenue expenditure |
| C. | Capital expenditure |
| D. | Illegal expenditure |
| Answer» B. Deferred revenue expenditure | |
| 89. |
The total income of a domestic company is taxable at the rate of ------- |
| A. | 20% |
| B. | 30% |
| C. | 40% |
| D. | 35% |
| Answer» C. 40% | |
| 90. |
The loss from speculation business can be set off against |
| A. | Any income |
| B. | Not any income |
| C. | Non speculative business |
| D. | Speculative business only |
| Answer» E. | |
| 91. |
Tax avoidance is ---- |
| A. | Illegal |
| B. | Immoral |
| C. | Lawful |
| D. | All of these |
| Answer» C. Lawful | |
| 92. |
Section 115JB relates to ---- |
| A. | Securities Transaction Tax |
| B. | Maximum Alternative Tax |
| C. | Minimum Alternative Tax |
| D. | Surcharge |
| Answer» D. Surcharge | |
| 93. |
Minor’s income is clubbed to ----- |
| A. | Father’s income |
| B. | Mother’s income |
| C. | Father’s income or mother’s income whichever is grater |
| D. | Both mother’s and father’s income |
| Answer» D. Both mother’s and father’s income | |
| 94. |
A person carrying not less than----- of the voting power in a company is said to have substantialinterest in the company. |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | 40% |
| Answer» C. 30% | |
| 95. |
income tax act came into force on ………… |
| A. | 01.04.1961 |
| B. | 01.04.1962 |
| C. | 01.04.1956 |
| D. | 01.04.1965 |
| Answer» C. 01.04.1956 | |
| 96. |
------ is the device which satisfies the requirements of the law but not in accordance with theintentions of the law |
| A. | Tax evasion |
| B. | Tax planning |
| C. | Tax avoidance |
| D. | Tax management |
| Answer» D. Tax management | |
| 97. |
The objectives of tax planning is to minimise .........? |
| A. | tax liability |
| B. | finance liability |
| C. | tax return |
| D. | none of these |
| Answer» B. finance liability | |
| 98. |
Reducing tax liability, utilizing the deductions, exemptions or reliefs allowed in the Act andRules is called---- |
| A. | Tax evasion |
| B. | Tax planning |
| C. | Tax avoidance |
| D. | Tax management |
| Answer» C. Tax avoidance | |
| 99. |
Using the loopholes of law to reduce tax is known as |
| A. | Tax evasion |
| B. | Tax planning |
| C. | Tax avoidance |
| D. | Tax management |
| Answer» D. Tax management | |
| 100. |
80 ID deals with tax holiday for |
| A. | Hospitals |
| B. | Hotels |
| C. | Natural gas |
| D. | Eligible business |
| Answer» C. Natural gas | |